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1984 Supreme(Pat) 407

PATNA HIGH COURT
Birendra Prasad Sinha, J.
Ananda Bazar Patrika Ltd.
Versus
Biswanath Prasad Maitin
Civil Revision No. 1446 of 1981 ;
Decided On : NOVEMBER 29, 1984

A suit for specific performance of a contract coupled with a prayer for possession of immovable property falls under Section 16(d) of the Civil Procedure Code and must be instituted in the court within whose jurisdiction the property is situated.

Headnote:

JURISDICTION - SUIT FOR SPECIFIC PERFORMANCE OF CONTRACT - SECTION 16(D) AND SECTION 20(C) CIVIL PROCEDURE CODE - INTERPRETATION AND APPLICATION - COURT'S DECISION INFLUENCED BY THE NATURE OF THE SUIT AND THE RELIEF SOUGHT.

Fact of the Case:

Plaintiff filed a suit for specific performance of an agreement to sell property located in Jasidih, Santhal Parganas, and possession of the same. The defendants, residing in Calcutta, objected to the jurisdiction of the Patna Court, arguing that the suit should be filed where the property is situated or where they reside.

Finding of the Court:

The court held that the suit was not maintainable at Patna as it fell under Section 16(d) of the Civil Procedure Code (CPC) and not Section 20(c) of the CPC. The court reasoned that the suit was not merely for specific performance but also for possession, creating an interest in or charge over the property.

Issues: 1. Whether the suit for specific performance of contract and possession is governed by Section 16(d) or Section 20(c) of the Civil Procedure Code. 2. Whether the Patna Court has jurisdiction to try the suit considering the location of the property and the residence of the defendants.

Ratio Decidendi: 1. Section 16(d) of the CPC provides that a suit for possession of immovable property shall be instituted in the court within the local limits of whose jurisdiction the property is situate. 2. Section 20(c) of the CPC allows a suit to be filed in a court within whose jurisdiction a part of the cause of action arises. 3. The court interpreted that a suit for specific performance of a contract coupled with a prayer for possession creates an interest in or charge over the property, bringing it under the ambit of Section 16(d) of the CPC.

Final Decision: The court set aside the impugned order of the subordinate judge and held that the suit was not maintainable at Patna. The court directed that the suit be filed in the appropriate court having jurisdiction over the property.

Judgment

1. The short question for consideration in this case is whether the suit filed by the plaintiff-opposite party against defendant-petitioners at Patna shall be governed by S.16(d) or S.20(c) Civil P. C.

2. The plaintiff-opposite party has filed a suit alleging, inter alia, that defendant-petitioners agreed to sell a property situate at Rohni Road, Jasidih in the district of Santhal Parganas and a sum of Rs.2,501 was paid by the plaintiff as part consideration. On 28-3-1980 the petitioners intimated the plaintiff by a letter at his Patna address that the petitioners were unable to proceed with the proposed sale of the above property and enclosed a draft of Rs.2,501/- which had been paid by the plaintiff as part consideration. The agreement to sell was executed at Calcutta where the defendant-petitioners reside and conduct their business. The property is situate at Rohni Road, Jasidih in the district of Santhal Parganas outside the jurisdiction of Patna Court. The plaintiff-opposite party has prayed for a decree for specific performance of the agreement to sell the property situate at Jasidih on payment of balance of the consideration money amounting to Rs.45,874/- to the petitioners. The plaintiff has further prayed that in case the defendants failed to register the sale deed, the sale deed should be registered through the Court and the plaintiff be put in possession of the property so conveyed. They also prayed for permanent injunction restraining the defendants from transferring the said propety to anybody else.

3. The defendants took an objection in the suit before the Subordinate Judge 1st Court, Patna, regarding jurisdiction. It was contended that the Patna Court had no jurisdiction to try the suit inasmuch as the land was situate at Jasidih outside the jurisdiction of Patna Court and the defendants resided at Calcutta which too was beyond the jurisdiction of the Patna Court. The learned Subordinate Judge held that since part of the cause of action arose at Patna, the suit could be filed at Patna under S.20(c). Civil P. C.

4. Mr.K.D. Chatterji learned counsel appearing on behalf of the petitioners contended that the suit is not merely for specific performance of the contract but is also for possession and, therefore, it can lie only in a Court within whose jurisdiction the property is situate or where the defendants reside. He relied upon the case of New Mofussil Co. Ltd. V/s. Sankarlal Narayan Das Mundade, AIR 1941 Bom 247. That was also a suit for specific performance and possession. The property was situate at Dhulia and belonged to a limited company with its registered office in Bombay. The vendee resided at Dhulia. Before the transaction was completed the liquidator put an end to the negotiation and sold the factory to some other person. The vendee sued the company and the subsequent purchasers of the factory for specific performance of the agreement and for possession of the factory. It was held that Dhulia Court alone had jurisdiction to try the suit against the company as well as the subsequent purchasers under S.16(d) of the Code as the suit in the form in which it was brought was not a suit in personam. Mr. Chatterji also relied upon a decision of the Madras High Court in S. Muhammad Eusoof Maricar V/s. K. Subramanian Chettiar, AIR 1950 Mad 272. In this case a non-resident foreigner entered into a contract for sale of a house which was situate within the jurisdiction of Indian Court, a suit by the vendee for specific performance of that contract and for recovery of possession was held to be maintainable by the Indian Court within whose jurisdiction the property was situate.

5. Mr. S.C. Ghose learned counsel appearing on behalf of the plaintiff-opposite party, on the other hand, submitted that this was purely a suit for specific performance of a contract and did not create any interest in or charge over any property and, therefore, the suit could be filed at Patna where the cause of action arose in part. He


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